The move comes after the registration of an FIR by Central Bureau of Investigation against Prakash Industries Ltd, alleging that they had applied for allocation of coal block vide application dated January 12,2007 to the Ministry of Coal as per the advertisement dated November 13,2006.

The application was found to be containing false net-worth details and on the basis of such misrepresentation, the company got allocated Fatehpur Coal Block on February 2, 2008, which was de-allocated in the year 2014. On the basis of the said FIR an enforcement case information report (ECIR) was recorded by ED on August 30, 2014.

The central probe agency, during its investigation, revealed that the company filed false declaration with the Bombay Stock Exchange(BSE) on November 17,2007 intimating there under the allocation of coal block whereas the coal block was actually allocated on February 2,2008 jointly to Prakash Industries Ltd and SKS Ispat Power Ltd.

As a result of filing of this false declaration the shares of Prakash Industries recorded an astronomical rise in their value resulting in escalating the price of one share from Rs 31 in March to Rs 351 in January 2008.

The company in order to en-cash the artificially created rise in their share value, issued 62,50,000 preferential shares on premium of 180 per share and sold these shares to five selected companies and in the process generated 118.75 crore in the form of share capital.

“The amount of Rs 118.75 crore, which was generated as a result of the schedule offence as committed on the date of filing of application for allocation of coal block by giving false net worth details and further false declaration to BSE, is the proceeds of crime, which are liable to be provisionally attached under PMLA”, ED officials said.

Accordingly, on investigation to the effect it was found that the above said proceeds of crime had been generated and used in the continuous expansion related to manufacturing activities, therefore the value of 117.09 crore was attached in the form of movable and immovable properties of the company under the provisions of PMLA, the officials added. (UNI)